American Pioneer Posts '85 Profit

American Pioneer Savings Bank Friday reported a 1985 profit of $3.8 million but a loss of 32 cents a share. That compared with a profit of $4.05 million and earnings of 40 cents a share in 1984.

The Orlando-based thrift said it posted a loss on its common shares for the 12 months ended Dec. 31 because it paid out $5.18 million in preferred- stock dividends; that compared with a $1.88 million payment in 1984. Holders of common shares cannot receive dividends until preferred dividends have been paid in full.

American Pioneer raised $36 million through the private sale of preferred stock in late 1984. The sale increased capital to meet requirements of federal regulators so that it could purchase six former Flagship Bank offices in Orange County.

The lower profit was attributed to $2.8 million in legal judgments against the company and a $3.23 million increase in loan-loss reserves. The lawsuits were the result of actions by an American Pioneer Life Insurance Co. agent in Alabama in 1978, a year before the current owners bought the company. American Pioneer has adopted a policy of building a loan-loss reserve equal to all its outstanding loans rather than the normal banking practice of setting aside funds to cover only questionable loans.

Income from operations rose to $4.19 million in 1985 from $3.86 million in 1984. American Pioneer had assets of $1.11 billion as of Dec. 31.

Fourth-quarter profit was $701,000, or a loss of 15 cents a share, after payment of the preferred-stock dividend. That compared with a loss of $987,000, or 44 cents a share, in the same quarter a year earlier.